LIC OFS shows strong demand with institutional investors subscribing 66% by noon.

Institutional investors have shown strong interest in the ongoing share offering of Life Insurance Corporation (LIC), subscribing to nearly two-thirds of the shares available by noon on Tuesday. The Indian government is looking to divest up to 6.5% of its stake in the state-owned insurance giant through this offering, which is anticipated to generate approximately ₹31,000 crore (around $3.7 billion) for the exchequer.

This stake sale is significant not only for the governments fiscal considerations but also for LICs compliance with the Securities and Exchange Board of India (Sebi) regulations concerning minimum public shareholding. Ensuring adherence to these guidelines is crucial for the company’s market credibility.

The move comes nearly a year after a previous stake dilution in May 2022, which marked LICs initial public offering (IPO) and was one of the largest in Indias history, raising approximately ₹21,000 crore at that time. This latest step indicates the government’s continued efforts to reduce its holdings in public sector enterprises as part of a broader disinvestment strategy aimed at enhancing market efficiency and boosting government revenues.